HB 207: "An Act establishing the Board of Agriculture, Conservation, and Development; transferring the powers and duties of the Natural Resource Conservation and Development Board to the Board of Agriculture, Conservation, and Development; transferring to the Department of Commerce, Community, and Economic Development the authority to approve loans from the agricultural revolving loan fund; terminating the Natural Resource Conservation and Development Board; and providing for an effective date."
00 HOUSE BILL NO. 207 01 "An Act establishing the Board of Agriculture, Conservation, and Development; 02 transferring the powers and duties of the Natural Resource Conservation and 03 Development Board to the Board of Agriculture, Conservation, and Development; 04 transferring to the Department of Commerce, Community, and Economic Development 05 the authority to approve loans from the agricultural revolving loan fund; terminating 06 the Natural Resource Conservation and Development Board; and providing for an 07 effective date." 08 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 09 * Section 1. AS 03.09.010(a) is repealed and reenacted to read: 10 (a) The Board of Agriculture, Conservation, and Development is established 11 in the department, composed of 12 members as follows: 12 (1) nine voting members appointed by the governor and subject to 13 confirmation by the legislature in joint session as follows:
01 (A) six members who are engaged in commercial production 02 agriculture, including at least one member from each of the four judicial 03 districts in the state; 04 (B) one member who has general business or financial 05 experience; 06 (C) one member who is a district supervisor of a soil and water 07 conservation district established under AS 41.10.130(a) who is also engaged in 08 commercial production agriculture; and 09 (D) one member who has experience in the preparation, 10 storage, processing, or handling of food products; 11 (2) three ex officio nonvoting members as follows: 12 (A) the commissioner or the commissioner's designee; 13 (B) the commissioner of environmental conservation or the 14 commissioner of environmental conservation's designee; and 15 (C) the chancellor of the University of Alaska Fairbanks or the 16 chancellor's designee from the Cooperative Extension Service or the School of 17 Natural Resources and Agricultural Sciences. 18 * Sec. 2. AS 03.09.010(d) is repealed and reenacted to read: 19 (d) Notwithstanding AS 39.52.150(a), a person with a lease, permit, 20 installment contract, or loan under AS 03.10 or AS 38.05, or who has an immediate 21 family member or owns a business with a lease, permit, installment contract, or loan 22 under AS 03.10 or AS 38.05, may be appointed to the board. Notwithstanding 23 AS 39.52.150(a), a board member may apply for and receive a lease, permit, 24 installment contract, or loan under AS 03.10 or AS 38.05. However, that person may 25 not take or withhold any official action that affects the lease, permit, installment 26 contract, or loan of that person or an immediate family member who shares the same 27 household and financial resources with that person. A person with a lease, permit, 28 installment contract, or loan under AS 03.10 or AS 38.05, or who has an immediate 29 family member who shares the same household and financial resources with the 30 person or owns a business with a lease, permit, installment contract, or loan under 31 AS 03.10 or AS 38.05, may not be appointed to the board and may be removed from
01 the board if the person, or the person's immediate family member who shares the same 02 household and financial resources of the person, or business, is in violation of the 03 terms and conditions of the lease, permit, installation contract, or loan. In this section, 04 "immediate family member" and "official action" have the meanings given in 05 AS 39.52.960. 06 * Sec. 3. AS 03.09 is amended by adding a new section to read: 07 Sec. 03.09.015. Powers of the board. (a) The board shall 08 (1) advise the commissioner, the commissioner of environmental 09 conservation, and the commissioner of fish and game on 10 (A) promotion, regulation, and protection of the agricultural 11 and food industry to broaden the economic base of the state and to protect 12 consumers; 13 (B) policy relating to 14 (i) agriculture; 15 (ii) land use; 16 (iii) resource conservation; 17 (iv) food safety and security; 18 (v) pesticides; 19 (vi) noxious and invasive plants; 20 (vii) animals and pests; and 21 (viii) animal care; 22 (2) consult with the director of the division of lands on modification to 23 contracts for the sale or lease of agricultural land including waiving, postponing, or 24 otherwise modifying the development requirements of a contract for the sale or lease 25 of agricultural land if 26 (A) the land is inaccessible by road; or 27 (B) transportation, marketing, and development costs render 28 the required development uneconomic; 29 (3) ensure the wise use of the state's natural resources through 30 conservation of its soil and water; 31 (4) at the request of the commissioner, meet and advise the
01 commissioner in the exercise of the powers, duties, and functions of the 02 commissioner; 03 (5) receive and review reports concerning the use of soil resources of 04 the state; 05 (6) hold public hearings and meetings to determine whether land in the 06 state is being used in a manner consistent with sound soil and water conservation 07 practices; 08 (7) recommend specific action necessary to provide for the effective 09 and orderly development of agricultural, forest, and grazing land in the state; 10 (8) review an appeal by an applicant or lessee from a decision of the 11 director of the division of lands concerning a sale or lease of state agricultural or 12 grazing land and submit the board's recommendations to the commissioner or hearing 13 officer; 14 (9) advise and regulate the soil and water conservation districts in the 15 state; 16 (10) act in an advisory capacity to the commissioner and director of the 17 division of the department with responsibility for agriculture in the review of farm 18 conservation plans for all state agricultural land sales in the state; 19 (11) enter into agreements with private lending institutions, other state 20 agencies or agencies of the federal government, to carry out the purposes of this 21 chapter; 22 (12) collect the fees and collection charges established under this 23 chapter; and 24 (13) recommend to the University of Alaska Cooperative Extension 25 Service or School of Natural Resources and Agricultural Sciences programs and 26 activities that will further the promotion, regulation, and protection of the agricultural 27 and food industry, broaden the economic base of the state, and protect consumers. 28 * Sec. 4. AS 03.09.020(a) is amended to read: 29 (a) The director of the division of the department with responsibility for 30 agriculture shall serve as the director of the board [BOARD OF AGRICULTURE 31 AND CONSERVATION]. The director may employ staff and, as directed by the
01 board, is responsible for the overall management and policy [DAILY 02 OPERATIONS] of the agricultural revolving loan fund (AS 03.10.040). 03 * Sec. 5. AS 03.09.030 is amended to read: 04 Sec. 03.09.030. Quorum. Five voting members of the board [BOARD OF 05 AGRICULTURE AND CONSERVATION] constitute a quorum for the transaction of 06 business [OR THE EXERCISE OF A POWER OR FUNCTION AT A MEETING OF 07 THE BOARD]. 08 * Sec. 6. AS 03.09.040(a) is amended to read: 09 (a) The board [BOARD OF AGRICULTURE AND CONSERVATION] may 10 adopt regulations under AS 44.62 (Administrative Procedure Act) to carry out its 11 duties, including regulations to establish reasonable fees for services provided and 12 charges for collecting the fees. 13 * Sec. 7. AS 03.09.050 is amended to read: 14 Sec. 03.09.050. Agricultural land. The board [BOARD OF AGRICULTURE 15 AND CONSERVATION] may recommend to the commissioner that land in the land 16 disposal bank established under AS 38.04.020 be classified as suitable for agriculture. 17 The board may identify state land for agricultural disposal and request the 18 commissioner to provide for the survey and disposal of the land. 19 * Sec. 8. AS 03.09 is amended by adding a new section to read: 20 Sec. 03.09.090. Definitions. In this chapter, 21 (1) "agriculture" includes farming, ranching, grazing, and storage or 22 control of crops or livestock, but does not include fishing, rearing of fish, or fisheries 23 products; 24 (2) "board" means the Board of Agriculture, Conservation, and 25 Development. 26 * Sec. 9. AS 03.10 is amended by adding a new section to read: 27 Sec. 03.10.025. Loans. (a) The department shall 28 (1) approve loans made from the agricultural revolving loan fund 29 (AS 03.10.040); 30 (2) adopt regulations 31 (A) establishing guidelines for approval of loans made under
01 AS 03.10; 02 (B) establishing guidelines for approval of emergency loans in 03 an amount not to exceed $50,000; and 04 (C) outlining the process for foreclosure on a loan, and 05 collecting on liens against security for the loan; the regulations must include a 06 requirement that any security collected shall become property of the 07 agricultural revolving loan fund (AS 03.10.040) and be disposed of by the 08 board. 09 (b) The department may make a loan to an individual state resident farmer, 10 homesteader, or a partnership or corporation composed of farmers and homesteaders 11 for 12 (1) clearing land for agricultural purposes; 13 (2) development of farms; 14 (3) storage and processing of farm products; 15 (4) the purchase of livestock or machinery; 16 (5) storage and processing plants for agricultural products; 17 (6) the commercial production or processing of horticultural products 18 in the state; 19 (7) the commercial production or processing of animal feed in the 20 state; or 21 (8) the raising or care of animals in the state for the purpose of 22 marketing their fur; 23 (9) the commercial production or processing of lime products, or other 24 minerals products if at least 50 percent of the production or process is for agricultural 25 use; and 26 (10) the supply, sale, manufacture, or repair of equipment, if at least 50 27 percent of the supply, sale, manufacture, or repair of equipment is for agricultural use. 28 (c) In this section, "horticultural products" means vegetables, fruit plants, 29 grass seed, sod, tree seedlings, ornamental plants, foliage, or flowering plants, grown 30 in a greenhouse or nursery. 31 * Sec. 10. AS 03.10.030(a) is amended to read:
01 (a) A [THE] farm development, chattel, or irrigation loan made under this 02 chapter 03 (1) may not exceed a term of 30 years, except that a chattel loan may 04 not exceed a term of seven years; 05 (2) may not, when added to the outstanding balance of other loans 06 made under this chapter, exceed a total outstanding balance of $1,000,000; 07 (3) shall be secured by a real estate or chattel mortgage of any priority, 08 except that the portion of a loan that exceeds $500,000, when added to prior 09 indebtedness that is secured by the same property, must be secured by a first 10 mortgage; 11 (4) shall bear interest at a fixed rate comparable to that charged by 12 other agricultural lending institutions in the state for loans similar to those referred to 13 in this subsection. 14 * Sec. 11. AS 03.10.030(c) is amended to read: 15 (c) A short-term loan, to be amortized within one year, not to exceed $350,000 16 to any one borrower may be made for operating purposes, except that a loan made 17 under this subsection may not exceed $200,000 unless the loan is made to a borrower 18 in a farm disaster area declared under AS 03.10.058. The loan shall bear interest at a 19 fixed rate comparable to that charged by other agricultural lending institutions in the 20 state for loans similar to those referred to in this subsection. An applicant for a short- 21 term loan may be required to purchase insurance through the Federal Crop Insurance 22 Act (7 U.S.C. 1501 - 1520) as a condition of the loan. The term of a loan made under 23 this subsection may be extended for up to three years by the department [BOARD 24 OF AGRICULTURE AND CONSERVATION], in the discretion of the department 25 [BOARD], upon application by the borrower. 26 * Sec. 12. AS 03.10.030(e) is amended to read: 27 (e) An installment payment is delinquent unless it is received by the 28 department [BOARD OF AGRICULTURE AND CONSERVATION OR THE 29 DIRECTOR OF THE BOARD] on or before the 30th day after the date specified for 30 payment in the loan agreement. If an installment payment is delinquent, the 31 department [DIRECTOR OF THE BOARD] may assess a delinquency penalty.
01 * Sec. 13. AS 03.10.030(h) is amended to read: 02 (h) The board [BOARD OF AGRICULTURE AND CONSERVATION] 03 shall adopt regulations to establish other terms for loans made under this chapter, 04 consistent with the provisions of this section, and may establish interest rates for loans 05 under (a)(4) of this section that 06 (1) encourage agricultural development; 07 (2) do not subsidize nonviable agricultural enterprises; and 08 (3) do not discriminate against viable existing agricultural enterprises. 09 * Sec. 14. AS 03.10.033(a) is amended to read: 10 (a) To increase the return to the state, the department [BOARD OF 11 AGRICULTURE AND CONSERVATION] may restructure loans (1) in existence on 12 January 1, 1987, made by the former Agricultural Revolving Loan Fund Board or by 13 the former Alaska Agricultural Action Council based on [UPON] guidelines approved 14 by the board [BOARD OF AGRICULTURE AND CONSERVATION]; (2) of a 15 borrower in an area that has been declared a farm disaster area under AS 03.10.058; or 16 (3) of a borrower who has experienced an agricultural disaster based on [UPON] 17 regulations adopted by the board [BOARD OF AGRICULTURE AND 18 CONSERVATION]. Notwithstanding any other provision of law that relates to loan 19 terms, the restructuring may only include reduction of interest to a fixed rate not less 20 than five percent a year, an extension of the term of the loan, and an improvement to 21 the security interest of the state. It may not reduce the amount of principal and interest 22 owed before the loan is restructured. 23 * Sec. 15. AS 03.10.033(c) is amended to read: 24 (c) Notwithstanding any other provision of this section, the department 25 [BOARD OF AGRICULTURE AND CONSERVATION] may approve an application 26 for restructuring under this section only upon 27 (1) the applicant's written release of the state, including the University 28 of Alaska, from all potential liability for actions and omissions occurring before the 29 date of restructuring that relate in any way to a state farm project, land sale, land sale 30 relinquishment, farm loan, or loan application or loan modification application, 31 whether granted or denied by the state; and
01 (2) assignment by the applicant to the state [BOARD] of the proceeds 02 from the federal government under 7 U.S.C. 1442 (Conservation Reserve Program) 03 and P.L. 88-26 (Feed Grain Act of 1963), as amended, and other farm programs. 04 * Sec. 16. AS 03.10.033(d) is amended to read: 05 (d) If the department [BOARD] receives proceeds under (c)(2) of this section 06 that exceed the amount owed and credited to the loan during the year, the department 07 [BOARD] shall refund the extra proceeds to the applicant. 08 * Sec. 17. AS 03.10.035(a) is amended to read: 09 (a) A borrower may not use farm land for a nonfarm use or sell, lease, or 10 otherwise dispose of farm land if that land is encumbered by a mortgage given to 11 secure the payment of a loan under this chapter unless the borrower either 12 (1) pays the outstanding balance of the loan in a lump sum or under 13 other terms agreed to by the department [BOARD OF AGRICULTURE AND 14 CONSERVATION] that accelerate payment of the loan; or 15 (2) pays the outstanding principal balance for the remaining term of 16 the loan at the prevailing rate of interest that is charged by commercial banks in the 17 state during the calendar quarter in which the board receives notice of the change of 18 use, sale, lease, or other disposal of the farm land. 19 * Sec. 18. AS 03.10.035(b) is amended to read: 20 (b) In this section, "nonfarm use" means a use of land other than for 21 agricultural or related activities [THE PRODUCTION OF DOMESTICATED 22 PLANTS AND ANIMALS USEFUL TO HUMANS], including production of forage 23 and sod crops, grain and feed crops, fruits, vegetables, [AND] livestock, and related 24 activities. 25 * Sec. 19. AS 03.10.040(b) is amended to read: 26 (b) Money in the fund may be used by the legislature to make appropriations 27 for costs of administering this chapter [AND FOR OPERATIONS OF THE BOARD 28 OF AGRICULTURE AND CONSERVATION]. 29 * Sec. 20. AS 03.10.050(a) is amended to read: 30 (a) The board [BOARD OF AGRICULTURE AND CONSERVATION] 31 shall administer the agricultural revolving loan fund. [A LOAN MAY NOT BE
01 MADE WITHOUT THE APPROVAL OF A MAJORITY OF THE BOARD, 02 EXCEPT THAT EMERGENCY LOANS BASED UPON REGULATIONS 03 ADOPTED BY THE BOARD AND NOT TO EXCEED $50,000 MAY BE MADE 04 UPON THE APPROVAL, BY MAJORITY VOTE, OF A COMMITTEE 05 COMPOSED OF THE CHAIR OF THE BOARD, ANOTHER BOARD MEMBER, 06 AND THE DIRECTOR OF THE BOARD.] 07 * Sec. 21. AS 03.10.050(e) is amended to read: 08 (e) To encourage the prompt payment of loans, the department [BOARD] 09 may establish a program of credits for persons who have a loan from the agricultural 10 revolving loan fund and maintain good financial standing. The credits may be applied 11 against not [NO] more than two percentage points a year of the interest due on 12 agricultural revolving loan fund loans. 13 * Sec. 22. AS 03.10.050 is amended by adding a new subsection to read: 14 (h) The board shall set interest rates on loans from the agricultural revolving 15 loan fund established in AS 03.10.040. Interest rates may be set at a rate lower than 16 other agricultural lending institutions for loans denied by other lenders for loans that 17 fall within a particular geographic area or for an activity that is established by the 18 board as a priority. 19 * Sec. 23. AS 03.10 is amended by adding a new section to read: 20 Sec. 03.10.090. Definitions. In this chapter, 21 (1) "agricultural" has the meaning given in AS 03.09.090; 22 (2) "board" has the meaning given in AS 03.09.090; and 23 (3) "department," notwithstanding AS 03.90.010, means the 24 Department of Commerce, Community, and Economic Development. 25 * Sec. 24. AS 38.04.020(g) is amended to read: 26 (g) After July 1 of each year, the commissioner shall direct the expenditure of 27 money appropriated for the disposal of land in response to requests made under (e) 28 and (f) of this section for the following: 29 (1) land designated as suitable for homestead disposal shall be 30 classified and surveyed under this chapter and AS 38.05 and made available for 31 staking and lease under AS 38.09;
01 (2) land designated as suitable for subdivision and homesite disposal 02 shall be surveyed, subdivided, classified, and disposed of under this chapter, 03 AS 38.05, and AS 38.08; 04 (3) land designated commercial, industrial, or suitable for other 05 disposal shall be sold under AS 38.05.055 or 38.05.057; 06 (4) land designated agricultural shall be disposed of under 07 AS 38.05.055 - 38.05.065, except the Board of Agriculture, [AND] Conservation, and 08 Development (AS 03.09.010) shall receive notice of each proposed disposal and be 09 given an opportunity to comment before the final disposal decision is made. 10 * Sec. 25. AS 38.04.030 is amended to read: 11 Sec. 38.04.030. Land availability programs. Programs that may be used by 12 the director to make the state's land surface available for private use under 13 AS 38.04.020 - 38.04.055 include sale of whole or partial rights to the fee simple 14 estate, including conveyance of agricultural use rights; leasing; open-to-entry; 15 homesiting; homesteading; permitting for construction and occupation of cabins in 16 isolated locations on land retained in state ownership; and other methods as provided 17 by law. However, agricultural use rights may be conveyed only after consulting with 18 the Board of Agriculture, [AND] Conservation, and Development. 19 * Sec. 26. AS 38.05.020(b) is amended to read: 20 (b) The commissioner may 21 (1) establish reasonable procedures and adopt reasonable regulations 22 necessary to carry out this chapter and, whenever necessary, issue directives or orders 23 to the director to carry out specific functions and duties; regulations adopted by the 24 commissioner shall be adopted under AS 44.62 (Administrative Procedure Act); 25 orders by the commissioner classifying land, issued after January 3, 1959, are not 26 required to be adopted under AS 44.62 (Administrative Procedure Act); 27 (2) enter into agreements considered necessary to carry out the 28 purposes of this chapter, including agreements with federal and state agencies; 29 (3) review any order or action of the director; 30 (4) exercise the powers and do the acts necessary to carry out the 31 provisions and objectives of this chapter;
01 (5) notwithstanding the provisions of any other section of this chapter, 02 grant an extension of the time within which payments due on any exploration license, 03 lease, or sale of state land, minerals, or materials may be made, including payment of 04 rental and royalties, on a finding that compliance with the requirements is or was 05 prevented by reason of war, riots, or acts of God; 06 (6) classify tracts for agricultural uses; 07 (7) after consulting with the Board of Agriculture, [AND] 08 Conservation, and Development (AS 03.09.010), waive, postpone, or otherwise 09 modify the development requirements of a contract for the sale of agricultural land if 10 (A) the land is inaccessible by road; or 11 (B) transportation, marketing, and development costs render 12 the required development uneconomic; 13 (8) reconvey or relinquish land or an interest in land to the federal 14 government if 15 (A) the land is described in an amended application for an 16 allotment under 43 U.S.C. 1617; and 17 (B) the reconveyance or relinquishment is 18 (i) for the purposes provided in 43 U.S.C. 1617; and 19 (ii) in the best interests of the state; 20 (9) lead and coordinate all matters relating to the state's review and 21 authorization of resource development projects; 22 (10) exercise the powers and do the acts necessary to carry out the 23 provisions and objectives of AS 43.90 that relate to this chapter. 24 * Sec. 27. AS 38.05.035(b) is amended to read: 25 (b) The director may 26 (1) delegate the administrative duties, functions, or powers imposed on 27 [UPON] the director to a responsible employee in the division; 28 (2) grant preference rights for the lease or purchase of state land 29 without competitive bid in order to correct errors or omissions of a state or federal 30 administrative agency when inequitable detriment would otherwise result to a diligent 31 claimant or applicant due to situations over which the claimant or applicant had no
01 control; the exercise of this discretionary power operates only to divest the state of its 02 title to or interests in land and may be exercised only 03 (A) with the express approval of the commissioner; and 04 (B) if the application for the preference right is filed with the 05 director within three years from 06 (i) the occurrence of the error or omission; 07 (ii) the date of acquisition by the state of the land; or 08 (iii) the date of a court decision or settlement nullifying 09 a disposal of state land; 10 (3) grant a preference right to a claimant who shows bona fide 11 improvement of state land or of federal land subsequently acquired by the state and 12 who has in good faith sought to obtain title to the land but who, through error or 13 omission of others occurring within the three years before (A) the application for the 14 preference right, (B) the date of acquisition by the state of the land, or (C) the date of a 15 court decision or settlement nullifying a disposal of state land, has been denied title to 16 it; upon a showing satisfactory to the commissioner, the claimant may lease or 17 purchase the land at the price set on the date of original entry on the land or, if a price 18 was not set at that time at a price determined by the director to fairly represent the 19 value of unimproved land at the time the claim was established, but in no event less 20 than the cost of administration including survey; the error or omission of a predecessor 21 in interest or an agent, administrator, or executor that has clearly prejudiced the 22 claimant may be the basis for granting a preference right; 23 (4) sell land by lottery for less than the appraised value when, in the 24 judgment of the director, past scarcity of land suitable for private ownership in any 25 particular area has resulted in unrealistic land values; 26 (5) when the director determines it is in the best interest of the state 27 and will avoid injustice to a person or the heirs or devisees of a person, dispose of 28 land, by direct negotiation to that person who presently uses and who used and made 29 improvements to that land before January 3, 1959, or to the heirs or devisees of the 30 person; the amount paid for the land shall be its fair market value on the date that the 31 person first entered the land, as determined by the director; a parcel of land disposed
01 of under this paragraph shall be of a size consistent with the person's prior use, but 02 may not exceed five acres; 03 (6) after consulting with the Board of Agriculture, [AND] 04 Conservation, and Development (AS 03.09.010), dispose of an interest in land 05 limited to use for agricultural purposes by lottery; 06 (7) convey to an adjoining landowner for its fair market value a 07 remnant of land that the director considers unmanageable or a parcel of land created 08 by a highway right-of-way alignment or realignment, or a parcel created by the 09 vacation of a state-owned right-of-way if 10 (A) the director determines that it is in the best interests of the 11 state; 12 (B) the parcel 13 (i) does not exceed the minimum lot size under an 14 applicable zoning code; or 15 (ii) is smaller than 20 acres and is completely enclosed 16 by property owned by the adjacent landowner; and 17 (C) the director and the platting authority having land use 18 planning jurisdiction agree that conveyance of the parcel to the adjoining 19 landowner will result in boundaries that are convenient for the use of the land 20 by the landowner and compatible with municipal land use plans; 21 (8) for good cause extend for up to 90 days the time for rental or 22 installment payments by a lessee or purchaser of state land under this chapter if 23 reasonable penalties and interest set by the director are paid; 24 (9) quitclaim land or an interest in land to the federal government on a 25 determination that the land or the interest in land was wrongfully or erroneously 26 conveyed by the federal government to the state; 27 (10) negotiate the sale or lease of state land at fair market value to a 28 person who acquired by contract, purchase, or lease rights to improvements on the 29 land from another state agency or who leased the land from another state agency. 30 * Sec. 28. AS 38.05.057(c) is amended to read: 31 (c) The commissioner, after consulting with the Board of Agriculture, [AND]
01 Conservation, and Development (AS 03.09.010), may adopt regulations under 02 AS 44.62 (Administrative Procedure Act) [THE ADMINISTRATIVE 03 PROCEDURE ACT (AS 44.62)] that specify qualifications for lottery participants 04 different from those specified in (b) of this section if 05 (1) an interest in land limited to agricultural purposes is to be sold 06 under (a) of this section; 07 (2) the sale is a part of a program to develop agricultural land as a 08 renewable resource of the state; and 09 (3) the regulations include residency, skill, experience, and financial 10 requirements necessary to qualify persons who are competent and financially able to 11 develop the land as a successful agricultural enterprise. 12 * Sec. 29. AS 38.05.059 is amended to read: 13 Sec. 38.05.059. Sale of agricultural land. The commissioner, after consulting 14 with the Board of Agriculture, [AND] Conservation, and Development 15 (AS 03.09.010), may provide for the sale of land classified under AS 38.05.020(b)(6) 16 for agricultural uses in parcels or tracts described by aliquot parts. The parcels or tracts 17 are subject to state subdivision requirements and municipal ordinances. Money from a 18 sale of agricultural land shall be separately accounted for and may be appropriated to 19 the agricultural revolving loan fund (AS 03.10.040). 20 * Sec. 30. AS 38.05.065(h) is amended to read: 21 (h) The commissioner, after consulting with the Board of Agriculture, [AND] 22 Conservation, and Development (AS 03.09.010), 23 (1) shall provide that, notwithstanding (a) and (b) of this section, in a 24 contract for the sale of land classified under AS 38.05.020(b)(6) for agricultural uses, 25 the interest rate to be charged on installment payments may not exceed 9.5 percent; 26 and 27 (2) may declare a moratorium of up to five years on payments on land 28 sold under this section for land classified under AS 38.05.020(b)(6) for agricultural 29 uses if 30 (A) the commissioner determines that the moratorium is in the 31 best interest of the state;
01 (B) the commissioner certifies and the contract purchaser 02 agrees to perform farm development, crop production, and harvesting, not 03 including land clearing or related activity, requiring the expenditure of 04 amounts equivalent to the payments that would otherwise be made during the 05 moratorium; 06 (C) the sale of the agricultural land takes place after July 1, 07 1979; and 08 (D) the contract purchaser is in compliance with the 09 development plan specified in the purchase contract at the time the purchaser 10 applies for a moratorium under this paragraph and remains in compliance with 11 the development plan during the moratorium; for the payments subject to the 12 moratorium declared under this paragraph, interest payments are subject to the 13 moratorium but interest continues to accrue during the moratorium. 14 * Sec. 31. AS 38.05.069(a) is amended to read: 15 (a) After consulting with the Board of Agriculture, [AND] Conservation, and 16 Development (AS 03.09.010), on a determination that the highest and best use of 17 unoccupied land is for agricultural purposes and that it is in the best interests of the 18 state to sell or lease the land, the commissioner shall grant to an Alaska resident 19 owning and using or leasing and using land for agricultural purposes a first option to 20 purchase or lease the unoccupied land situated adjacent to land presently held by the 21 Alaska resident for the amount of the high bid received at public auction or by sealed 22 bid. If more than one Alaska resident qualifies for a first option under this section, 23 eligibility for the first option shall be determined by lot, and the option must be 24 exercised on the conclusion of the public auction or opening of sealed bids. A parcel 25 of agricultural land sold under this section may not be less than 20 acres, and a parcel 26 of agricultural land that is acquired by exercise of the option granted in this subsection 27 may not exceed 320 acres. Agricultural land that is acquired under this section must be 28 used for agricultural purposes as required by law. 29 * Sec. 32. AS 38.09.010(a) is amended to read: 30 (a) The commissioner shall designate and make available for homestead entry 31 state land, including, after consulting with the Board of Agriculture, [AND]
01 Conservation, and Development (AS 03.09.010), land classified for agricultural use. 02 State land made available for homestead entry under this chapter shall be distributed 03 throughout the state. 04 * Sec. 33. AS 39.50.200(b)(56) is amended to read: 05 (56) Board of Agriculture, [AND] Conservation, and Development 06 (AS 03.09.010); 07 * Sec. 34. AS 41.10.140(1) is amended to read: 08 (1) "board" means the Board of Agriculture, Conservation, and 09 Development established under AS 03.09.010 [ALASKA NATURAL RESOURCE 10 CONSERVATION AND DEVELOPMENT BOARD]; 11 * Sec. 35. AS 03.10.020, 03.10.050(b); AS 41.10.040, 41.10.045, 41.10.050, 41.10.060, 12 41.10.065, 41.10.070, 41.10.075, 41.10.080, 41.10.090, and 41.10.100 are repealed. 13 * Sec. 36. The uncodified law of the State of Alaska is amended by adding a new section to 14 read: 15 TRANSITION: TERMS AND INITIAL APPOINTMENTS. (a) Notwithstanding 16 AS 03.09.010(a), the terms of the current members of the Board of Agriculture and 17 Conservation expire on January 31, 2015. A person whose term expires on January 31, 2015, 18 is eligible for appointment under AS 03.09.010(a) to a term beginning February 1, 2015. 19 Notwithstanding AS 03.09.010(b), a member of the Board of Agriculture and Conservation 20 whose term expires on January 31, 2015, and who is appointed under this subsection may 21 serve two successive terms on the Board of Agriculture, Conservation, and Development. 22 (b) A member of the Natural Resource Conservation and Development Board on 23 January 31, 2015, is eligible for appointment to the Board of Agriculture, Conservation, and 24 Development if the member otherwise meets the requirements of AS 03.09.010(a). A member 25 who is appointed to the board under this subsection may serve two successive terms on the 26 Board of Agriculture, Conservation, and Development. 27 (c) Notwithstanding the effective date in sec. 39 of this Act, the governor may make 28 the initial appointments to the Board of Agriculture, Conservation, and Development, but a 29 member under this subsection may not take office until February 1, 2015. 30 (d) Notwithstanding AS 03.09.010(b), the terms of the members of the Board of 31 Agriculture, Conservation, and Development whose terms begin on February 1, 2015, are as
01 follows: 02 (1) three members serve for three years; 03 (2) three members serve for two years; and 04 (3) three members serve for one year. 05 * Sec. 37. The uncodified law of the State of Alaska is amended by adding a new section to 06 read: 07 TRANSITION: REGULATIONS. The Department of Commerce, Community, and 08 Economic Development and the Department of Natural Resources may adopt regulations 09 necessary to implement the changes made by this Act. The regulations take effect under 10 AS 44.62 (Administrative Procedure Act), but not before January 31, 2015. 11 * Sec. 38. Sections 36(d) and 37 of this Act take effect immediately under AS 01.10.070(c). 12 * Sec. 39. Except as provided in sec. 38 of this Act, this Act takes effect January 31, 2015.